Autopay: Auto Refinance Review
If your current auto payments are too much to handle, refinancing your auto loan may help you get a better rate and a lower payment. But with so many lenders out there, it can be hard to figure out which ones offer auto refinance and how they all compare.
To help you see what’s available, we’ve combed through information on the refinance loans offered through Autopay and broken it all down for you in this Autopay review. Read on to learn about the financing options at Autopay, how to apply for them and to whom such a loan might be best.
In this review, we’ll cover:
Based in Denver, Autopay offers new car auto loans, traditional refinance, cash-back refinance and lease buyout refinance. It’s not a lender though, so it doesn’t loan its own money out to customers. Rather, it’s a lender marketplace — by filling out an online form with Autopay, you might receive multiple potential refinance loan offers from different lenders, with each lender competing for your business.
Autopay reports that 94% of customers applying through its site get approved for financing and says that, on average, it cut customer’s interest rates in half, affording customers a savings of $165 a month.
Autopay works with many lenders, and each has different criteria for loan qualification. This may sound complicated, but it can work to your advantage. Different lenders look for different credit profiles and provide refinancing for people at varying levels of credit.
Here are some of the basics about refinance loans offered through Autopay as of Dec. 14, 2018:
- APRs start at 1.99%.
- The minimum loan term is 24 months, while the maximum goes up to 84 months.
- The remaining loan balance must be at least $5,000, according to a representative, but no more than $100,000.
- According to a representative, other than motorcycles, Autopay doesn’t have refinancing for specialty vehicles (RVs, ATVs, boats).
To apply, start by visiting Autopay’s website and clicking on one of the buttons that say, “get my rates,” “get started” or “refinance now.” This will take you to an online form to fill out. You’ll need your driver’s license, auto insurance, proof of income (such as pay stubs or a tax return), proof of residence (such as a utility bill or lease agreement), vehicle information and a payoff letter from your current lender showing how much is left on the loan.
Once you submit the online form, Autopay works to find the best refinancing offers for which you’re preapproved. At this point, you’ll only be subject to a soft pull on your credit (which won’t affect your credit score), and all offers are good for 30 days.
Review the offers Autopay may find for you, and if you see one or more that you like, click through to officially apply. If you choose a lender’s offer, the lender will do a hard pull on your credit, which does have an impact on your credit score. However, note that it doesn’t hurt your credit to apply to several lenders for the same type of loan within a 14-day window any more than it would if you only applied to just one. The credit bureaus allow this window so consumers can shop around for the best loan.
If you’d like, you could also check out what’s available from other lenders, including your bank, credit union or another online marketplace such as LendingTree.
Autopay does not charge you any fees for using their site or seeking loan offers for you. However, you should be aware of any add-ons.
Autopay offers add-ons such as GAP and extended warranties on vehicles. Both can be useful, but know what you’re buying and for how much. You may be ecstatic that you got a great rate and your payment went down, but don’t just say OK to a payment that includes something. Ask for more explanation and find out what the total price is, not just the monthly price.
GAP — This stands for “Guaranteed Asset Protection.” There are different types of GAP, with a wide range of prices. The kind Autopay sells is a GAP waiver, which pays off your auto loan and your auto insurance deductible if you total your car and your auto insurance doesn’t cover the full amount you owe on your loan.
GAP waiver prices can range from $299 to over $1,000. The main reason for such a large price range is not because the cost differs dramatically based on your loan amount, but because people don’t realize you can negotiate on the price to bring it down. And you should not be required to buy it in order to get a loan, according to the Consumer Finance Protection Bureau.
Extended warranty — This is also called a vehicle service contract (VSC). It pays for the parts and labor it takes to fix your car (and maybe a rental car and roadside assistance) if certain things break within a specified time period and mileage limit.
Like GAP, you can negotiate on its price, and it should not be a requirement in order to get a loan. If you are interested in an extended warranty, check out LendingTree’s ultimate warranty cheat sheet.
Here are some of the upsides and downsides we found while compiling our Autopay review. Be sure to consider them, and look at other potential auto refinance lenders to compare.
Advantages to Autopay auto loan refinancing
- Allows refinancing for relatively small amounts
- Works with customers with all levels of credit
Disadvantages to Autopay auto refinancing
- At this time, Autopay doesn’t refinance specialty vehicles other than motorcycles.
This would be one of the best auto refinancing sources to go with if you have a small remaining loan balance or not-so-stellar credit.
The loans offered through Autopay have lower minimum required refinance loan balances ($5,000) compared with many other auto refinance options, which often demand a minimum of $10,000. And as a loan marketplace, Autopay works with lenders across the board, which could help you find competitive rates, even if you only have fair credit. It lets you know pretty quickly which lenders offer rates you may qualify for.
Overall, Autopay provides an easy way to shop around. Instead of applying to each lender separately by filling out multiple applications just to find out what they offer, you could submit one online form with Autopay and potentially receive multiple auto refinance offers. It’s worth trying out, and make sure you’re happy with the details of your loan offer before you sign.